PRIVI SPECIALITY CHEMICALS LIMITED Annual Report 2020-21

179 Annual Report 2020-21 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS Particulars As at March 31, 2021 As at March 31, 2020 (Restated) For Wholly owned subsidiary company (Privi Biotechnologies Private Limited) Discount rate (p.a.) 6.44% N.A. Expected rate of Salary increase (p.a.) 8.25% N.A. Attrition Rate For service 2 years and below : 20% For service 3 to 4 Years : 10% For service 5 Years and above: 5% N.A. Mortality Tables Indian Assured Lives Mortality (2006-08) N.A. At March 31, 2021 the weighted average duration of the defined benefit obligation was 14 years (March 31, 2020 - Nil years) The estimates of future salary increase, considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors such as supply and demand in the employment market. A quantitative sensitivity analysis for significant assumption is as shown below: Particulars Discount rate Future salary increase March 31, 2021 March 31, 2020 (Restated) March 31, 2021 March 31, 2020 (Restated) Impact on defined benefit obligation due to: a. 1% increase (93.55) (82.62) 105.68 93.37 b. 1% decrease 108.23 95.64 (93.23) (82.33) The sensitivity analysis above has been determined based on a method that extrapolates the impact on defined benefit obligation as a result of reasonable changes in key assumptions occurring at the end of the reporting period, as calculated by Actuary. Experience adjustment for last five years Particulars March 31, 2021 March 31, 2020 (Restated) March 31, 2019 (Restated) March 31, 2018 (Restated) March 31, 2017 (Restated) Defined benefit obligation 1,178.61 1,016.53 789.99 627.56 522.23 Surplus/(deficit) (1,178.61) (1,016.53) (789.99) (627.56) (522.23) Experience adjustment on plan liabilities 17.66 43.72 54.61 23.63 31.42 Compensatory absences The Group provides for the encashment of leave or leave with pay subject to certain rules. The employees are entitled to accumulate leave subject to certain limits, for future encashment. The liability is provided based on the number of days of unutilized leave at each balance sheet date on the basis of an independent actuarial valuation. Amount of Rs. 96.16 lakhs (March 31, 2020 Rs. 147.42 lakhs) has been recognised in the Consolidated Statement of profit and loss on account of provision for long-term employment benefit. 32 Employee benefits - Post-employment benefit plans (continued) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS for the year ended March 31, 2021 (Currency: Indian Rupees in lakhs)